In recent times, the companies which are involved in the marijuana space have come back into the focus of many investors and that is primarily rooted in optimism with regards to cannabis legislation. One of the companies that investors could consider following at this point in time is Medical Marijuana Inc (OTCMKTS:MJNA).
The company is one of the biggest players in the CBD space and CNBC had in fact ranked Medical Marijuana as the top producer of the product. It owns a portfolio of CBD product brands spanning the world, sources non-psychoactive cannabis products that are manufactured from hemp, and also conducts clinical research into the development of medicines through its investment companies in the pharmaceutical space.
It is clear to see that Medical Marijuana has a pretty sprawling operation and is rightly counted among the biggest players in the CBD industry. Earlier this week, the company released its financial results for the fourth quarter of 2020 and also for the full year 2020. The stock soared after Medical Marijuana managed to deliver a strong performance for the full year.
The net revenues came in at $46.9 million, which was lower than the $75.6 million that had been generated back in 2019. While that may be true, the company managed to deliver better margins. Gross margins stood at 80% in 2020 as opposed to 76% in 2019.
However, there was further good news for the company as the sales and marketing expenses on a GAAP (generally accepted accounting principles) basis had also been reduced. Those expenses as a percentage of the total sales were 48% in 2020.
However, in 2019, it had stood at 55% and that marks a significant improvement for Medical Marijuana. Hence, it was no surprise that the stock soared earlier this week after the announcement of those results. It now remains to be seen if the stock can continue to maintain its momentum.
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